Breaking News: UPI Circle Revolutionizes Digital Payments with Delegate Payments Feature
In a groundbreaking move, the National Payments Corporation of India (NPCI) has introduced a new feature to the Unified Payments Interface (UPI) platform, known as UPI Circle-Delegate Payments. This innovative feature allows primary holders of UPI accounts to delegate transaction rights to secondary users, revolutionizing the way multiple users can utilize a shared bank account for conducting UPI transactions.
The main objective behind the development of UPI Circle-Delegate Payments is to provide a common platform that simplifies and enhances transactions between individuals who are familiar with each other but may not have their own bank accounts. This feature aims to facilitate seamless and secure financial exchanges among trusted parties such as family members, friends, employees, and acquaintances.
During the August meeting of the Monetary Policy Committee (MPC) held by the Reserve Bank of India, the introduction of the UPI Circle-Delegate Payments feature was announced. This feature allows the primary user of a UPI account to authorize another individual to make UPI transactions, even without having a separate UPI-linked bank account.
Governor of the RBI, Shaktikanta Das, emphasized the significance of allowing two people to make payments from the same bank account, stating that it will further deepen the reach and usage of digital payments across the country. The central bank expressed its intention to issue detailed instructions regarding the implementation of this feature in the near future.
Understanding UPI Circle-Delegate Payments
The Unified Payments Interface (UPI) Circle-Delegate Payments feature has been strategically designed to provide a seamless solution for two individuals to utilize a shared bank account for conducting UPI transactions. This functionality proves to be especially beneficial for households where only one individual possesses a bank account or in scenarios where several family members manage a joint account.
“UPI Circle-Delegate Payments is a feature where a UPI user acts as a primary to link with their trusted secondary users on their UPI App for either partial or full delegation,” NPCI stated in a statement.
The Purpose of UPI Circle-Delegate Payments
The UPI Circle-Delegate Payments feature enables primary users to assign payment responsibilities to designated secondary users whom they trust. This platform guarantees that the main user retains authority over transaction ceilings and supervision, thereby enhancing user convenience while upholding stringent security measures.
During the UPI Steering Committee meeting held on August 3, 2023, the UPI Circle was officially approved, paving the way for a new era of collaborative digital payments.
How UPI Circle-Delegate Payments Work
On the UPI Circle platform, primary users have the option to link their UPI accounts with secondary users, providing them with the privilege of conducting payments on their behalf. This mechanism encompasses two key forms of delegation:
1. Full Delegation: The primary user bestows upon the secondary user the power to both initiate and execute transactions within specified spending thresholds. The secondary user does not need additional approval to carry out these transactions.
2. Partial Delegation: The secondary user can initiate transactions, but the primary user is required to authenticate and finalize the payment via their UPI PIN. This model ensures oversight for significant transactions while allowing flexibility in managing routine payments.
NPCI stated that for linking, the primary user can scan a QR code or enter the secondary user’s UPI ID, followed by selecting contact numbers from the contact list. In the future, the primary user will be able to link the secondary user by selecting a contact number from the contact list only, with manual entry of mobile numbers being restricted.
Additionally, a primary user can delegate payment authorization to up to five secondary users, while a secondary user can accept delegation from only one primary user. Transparency and control are maintained through limits set by the primary user and visibility of transactions performed by the secondary user.
Key Guidelines for UPI Circle-Delegate Payments
NPCI has laid out key guidelines for UPI apps and Payment Service Providers (PSPs) to ensure a seamless user experience and enhanced security measures:
1. Both primary and secondary users will undergo distinct user journeys within their UPI applications, allowing them to uphold their preferences and control transactions effectively.
2. Every secondary user must utilize passcodes or biometric validations like fingerprint or facial recognition to secure financial transactions.
3. Primary users can link secondary users through methods such as scanning a QR code or inputting the secondary user’s UPI ID, with contact selection directly from the primary user’s phone.
4. Manual insertion of mobile numbers is restricted to enhance security.
5. A primary user can delegate payment authorization to a maximum of five secondary users, while a secondary user can accept delegation from only one primary user.
Beneficiaries of UPI Circle-Delegate Payments
The UPI Circle feature offers a convenient and inclusive solution for individuals who may lack the capacity or inclination to oversee their digital transactions but still seek to utilize financial services. This feature is particularly beneficial for:
– Dependents such as minors or elderly parents who can manage expenses without individual accounts.
– Employees who can conduct business transactions under the supervision of their employers, enhancing efficiency in the workplace.
– Family members who can now use one bank account for making UPI payments, especially in rural areas where financial literacy is limited.
Rahul Jain, CFO of NTT DATA Payment Services India, highlighted the significance of UPI Circle-Delegate Payments in empowering consumers with easy, safe, and hassle-free financial transactions, contributing towards a digitally empowered nation.
In conclusion, the introduction of the UPI Circle-Delegate Payments feature signifies a significant step towards enhancing the accessibility and security of digital payments in India. By enabling multiple users to utilize a shared bank account for conducting transactions, this feature promotes convenience, transparency, and efficiency in financial exchanges among trusted parties. As the digital payments landscape continues to evolve, initiatives like UPI Circle-Delegate Payments play a crucial role in driving financial inclusion and empowerment across the country.